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Consumer Products

The scale and complexity of large consumer businesses requires a clear understanding of true profitability down to individual customer, product and supplier level.  This enables more informed strategic decisions to be made in areas such as pricing and SKU management to ultimately enhance overall business performance.

On the surface, customers, products and channels may look profitable on a gross margin basis but this can easily change when the true cost to serve is taken into account.  Many consumer product businesses use the traditional approaches of allocating costs based on an agreed average or fixed basis, but with an increased focus on driving innovation, these approaches are being challenged and alternative ways of defining the true costs are now even more crucial to provide a real insight into profitability.

Avisen partners with leading Consumer Products companies to deliver solutions including:

  • Supplier Profitability
  • SKU Rationalization
  • Product Profitability
  • Cost-to-Serve Analysis
  • COGS / Standard vs. Actual Product Cost
  • Customer Segment Profitability
  • Sourcing Decisions (import/export, category management)
  • Fact-based Contract Negotiations
  • Operational Efficiency: process changes, benchmarking, capacity utilization
  • Supply Chain Costing and Profitability

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